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easyMCQCUET Accountancy 2022 8 Aug Shift 22026Accountancy
1 mark

Cash payment to and on behalf of employees is:

  1. A
    financing activity
  2. B
    investing activity
  3. C
    operating activity
  4. D
    none of these

Solution & Step-by-step Explanation

Cash payments to and on behalf of employees arise from the principal revenue-producing activities of the enterprise, hence they are operating activities.

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Cash payment to and on behalf of employees is:
A
financing activity
B
investing activity
C
operating activity
D
none of these

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Financial StatementsCash Flow

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